Save Your Credit

Saving money on credit cards is very possible with discipline and the right focus.

To save your credit, you should be aware of the following things: your credit card limit, your interest rates, your due date, and all the transactions that you’ve been doing with your card. Knowing these facts and understanding how credit cards work and how your monthly dues are computed are the first steps to saving your credit.

Every time you use your card, you should get your receipt and keep them so that when you receive your monthly billing statement, you can reconcile each transaction recorded with the receipts that you have. This way you can save your credit card from statement errors that will cost money if not disputed with your card company. And when your deadline approaches, make sure to pay more than the minimum fee, if you can’t afford to pay in full. Never miss a payment due date if you don’t want to get slapped with late payment fees and penalty interest rates the next month. Paying your balance in full will even give you the privilege of having a grace period which will save your credit by hundreds of dollars.

There is another trick to the trade when you want to save your credit. It’s converting your balance into a zero-interest installment payment plan. When you used your credit card for a large purchase that you cannot pay in full, opt for this alternative. It will save you a lot on interest rates. However, make sure that the processing fee is not that high that you don’t get to save anything at all. The savings you get should justify all the fees included to save your credit from blowing up.

If you have a huge balance on your credit card, you should not just keep on paying for it. Shop for other cards that give reasonable fees or zero-interest balance transfers. This will save your credit in more ways than one.

Though cash advance transactions are very tempting, try to avoid them. This is because aside from the transaction fee slapped, you also get an interest rate that is higher than that one imposed on your purchases. And when you don’t pay in full, the initial payment you give will not go to your cash advance due, it will be given to other transactions that have lower interest rates. This will make your payment for your cash advance twice more than the amount you took initially.

If you’re one who religiously pays your balance in full every month, it’s also a good thing to not be comfortable with your card. There will always be issuers out there who will give you the same features with a lower interest rate. Try to weigh your options and call your current card company. If they match the interest rate offered to you by another company, good for you. If they don’t, cancel your card and switch to the other company. This move can save your credit.


Source: Credit Cards For People With Bad Credit Rating

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